Trump surprises Ford boss with 'out of the blue' call as tariffs loom
Ford Motor Co.'s Bill Ford says a "long, long" and "terrific" talk with Trump leaves him confident president-elect supports auto industry, workers.
DETROIT − Ford Motor Co. Executive Chair Bill Ford said he is confident the automaker will "have a seat at the table" with the new Trump administration, noting a lengthy phone call he had last week with President-elect Donald Trump.
“We had a long, long, conversation," Ford said. "He called me out of the blue and we had a terrific conversation. And he understands the importance of our industry and Ford in the industry. He wants to be helpful. I think once he gets his staff together, we’ll probably be able to go a little bit deeper."
Ford made the comments Thursday night on the sidelines of the Detroit Auto Show after the company brought out Detroit Lions quarterback Jared Goff to help introduce the world to the special edition Mustang GTD Spirit of America.
At that same event, Ford CEO Jim Farley talked to reporters about how this will be a key year for Ford to focus on affordability and improving quality, especially long-term powertrain durability.
An 'out of the blue' Trump call
But first, reporters asked Ford about his concerns with the incoming administration, given the prospect of Trump enacting heavy tariffs − taxes paid on goods when they cross international borders − on vehicles and parts. Ford makes cars in other countries that it sells in the United States. It also imports many parts used to make cars here.
Observers also expect Trump to repeal some of the policies in the Inflation Reduction Act that have benefitted automakers, such as the $7,500 tax credit for buyers of electric vehicles.
The act also includes the production tax credit, which allows a business to reduce taxes based on the amount of electricity it generates, by solar and other qualifying technologies, for the first 10 years of a system's operation. Ford is building factories to take advantage of the production tax credit, so a repeal of that would be costly to Ford.
Ford said Trump is tuned into Ford's concerns and supports a strong American industry. He said Trump wants to work with the industry to strengthen it further. Ford said they did not discuss having an advisory council composed of industry leaders such as the one Trump had in his first term.
Ford said that during Trump's first term, the auto industry was brand new to him. But, "he’s had a few years to think about the importance of a strong industrial base. His knowledge today is way superior to what it was when he came in the first term."
Also, Trump already knows Bill Ford and General Motors CEO Mary Barra from working with them during his first term, both of whom he can call, Ford said. Last month, Barra told reporters that she is eager to work with Trump on policy. "My experience has been that he listens intently," Barra said at the time. "He listens very intently."
New Ford factories depend on Inflation Reduction Act
Ford CEO Jim Farley told reporters that it is critical that Trump and lawmakers do not repeal the IRA's production tax credit.
“It would be a significant impact for our industry if it goes away," Farley said. "Many of our plants in the Midwest that converted to EVs depend on the production credit. We would have built those factories in other places, but we didn’t."
"Our Marshall, Michigan, factory here … the reason we’re building that in Michigan is because of the production tax credit," he said. "It changed the math for a lot of investments. That’s the key focus for us.”
Farley said Bill Ford drilled home the message to Trump that Ford produces more vehicles in the United States and exports more vehicles than any other automaker.
"We have the most UAW workers than anybody," Farley said. "We are America’s car company. Let’s work together to make our industry stronger. We have a lot of policy decisions to make, from tariffs to (carbon emissions) policy, and we can work together to make our industry strong and make companies like Ford, who have bet on America, stronger."
The year ahead for Ford
Farley said 2025 will be the year for Ford to make gains in sales and profits as it rolls out redesigned vehicles and its efforts at quality improvement pay off.
“We are so pumped up about this year. Even though maybe pricing will get worse in the United States, this is our chance. We’ve made a lot of progress on quality and cost last year," Farley said. "This is our chance to really make progress in the face of a stiffening pricing environment. It’s our chance … to take our future in our own hands to perform like we should."
Farley pointed to the Maverick midsize pickup as being the company's fastest selling vehicle in the United States and its most affordable, adding, "What we’re really doing is pushing affordability."
Bill Ford added that the company is working hard on making EV's more affordable regardless of whether a federal tax credit is in place. He said EV affordability will be "the catalyst for much wider adoption."
As for Ford's quality, Farley said the automaker's industry-leading recalls dropped by 20% last year compared with 2023.
"But we’re focused on much more than recalls," Farley said. "We’re focused on short-term, three months in service and long-term powertrain durability. Our quality story will start to evolve this year. It will, of course, be on reducing our volume of recalls. But we’re increasingly focused on long-term powertrain durability."
Specifically, Ford is investing in more robust transmissions and engines and different kinds of hybrid systems for better quality, he said.
Finally, Farley said Ford's overseas business is thriving, especially in the largest car market in the world: China.
“I’m happy to say that Ford makes money in China and I’m very proud of that because many, many (automakers) can’t say that," Farley said. "We’ll make over $600 million in China, if you include our exports. The China market is the perhaps most important market in the world today."
Facing Trump's agenda
But Farley said Ford’s supply chain depends on parts from countries around the world, so an increase in tariffs would be a challenge this year.
Asked how he perceives the new Trump administration, Farley said, "I think the new administration is very focused on policy. They got elected because Americans want change, and they know exactly what they want to change: Tax, border, energy … and supporting companies like Ford. They’re very focused on taking action quickly."
Bill Ford said Trump was clear on his intentions during their phone call. It is to not only to help the American car industry, but to aid the workers in it too.
"He cares very much about the people in the plants," Ford said. "He made that clear in the campaign and he made that clear to me too. It wasn’t just a campaign promise. I feel very confident that Ford will have a voice and a seat at the table.”
Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@freepress.com. Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.